Business / Auto Policy

Struggle to meet new-energy goals

By Li Fusheng (China Daily) Updated: 2014-05-12 08:31

Despite a 30-plus percent growth from 2012, new-energy vehicles manufactured and sold in the two years totaled less than 60,000. In other words, China has to roll out and sell another 440,000 such vehicles in 2014 and 2015 to fulfill the planned target.

As a result local governments are being urged to step up their efforts.

"Some local governments still do not have a clear understanding and are adopting a wait-and-see attitude," Vice-Premier Ma Kai said when he chaired a meeting to promote new-energy vehicles in Shenzhen in late March, according to the Chinese Business Herald.

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The report said Ma pointed out the problems hindering the sector's development, including inadequate charging facilities, protectionism and lack of a proper profit model.

Positive signs

Cities including Guangzhou have followed the examples of Beijing and Shanghai by setting themselves goals for the number of new-energy vehicles on their streets in the next two years.

The charging network is also expanding. One of the State Grid's latest moves was to build charging stations along the expressway from Beijing to Hunan in Central China, according to the Changjiang Daily.

The Beijing government plans to complete construction of 1,000 public fast-charging poles by the end of the year, covering both downtown areas and suburbs.

Shanghai Mayor Yang Xiong promised that his government would offer 3,000 free license plates each year to imported pure electric vehicles when he met Tesla CEO Elon Musk in April.

If it goes ahead the deal would be the first favorable policy nationwide for imported electric vehicles. License plates for gasoline vehicles in Shanghai are auctioned and brought in up to 70,000 yuan ($11,475)last month.

Tesla's entry into the Chinese market is a double-bladed sword, said Minister of Science and Technology Wan at the founding ceremony of the electric vehicle council.

He said Tesla is a competitor for Chinese brands but also gives them the impetus to grasp opportunities to develop electric vehicles.